Phoenix Commodities now in liquidation was valued at more than $1bn in January – The National

Phoenix Commodities now in liquidation was valued at more than $1bn in January – The National

Rapid decline of the defunct company was caused by currency trading losses incurred in February and March, according to liquidators' report. Phoenix Commodities, the trading and distribution group that was placed into liquidation last month with debts of more than $400 million (Dh1.47 billion), was valued at $1.1bn-$1.24bn as recently as January, according to a document filed by its provisional liquidators.. The valuation, provided by Deloitte India based on the company's June 2019 accounts, show the speed at which currency trading losses incurred by the company's financial derivatives desk in Dubai led to its decline.. Phoenix Commodities, which was registered in the British Virgin Islands but had its main operating entity, Phoenix Global DMCC (PGD), in Dubai, was undone by "accrued losses incurred by its financial derivative trading desk" in February and March, according to the document seen by The National.. "As losses continued to accrue on PGD's open trades so did the requirement for the company to post margin calls in the form of cash collateral which it was unable to meet," the document said, adding the situation was exacerbated by counterparties who were unwilling to let the firm close its trades.. Phoenix Commodities began as a rice trading